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In the 1955 Transistor are replaced the electric tubes. Transistors are reliable when compared with tubes, they occupy less space, they require less power and have higher operating speed. They have no filament and require no heating. Manufacturing cost was also very low. COBOL, FORTRAN, ALGOL were developed during this generation. Operating System and Batch Operating System also developed in this period. In this generation the concept of Central Processing Unit (CPU), memory, programming language and input and output units were developed.

Some of the computers in this Generation :

IBM 1620: It is smaller size as compared to First Generation computers and it is mostly used for scientific purpose.

IBM 1401: Its size was small to medium and used for business applications. It is used for business applications and size is small to medium